Why Is The Stakeholder Approach Important? The analysis finds that the stakeholder approach is a legitimate management strategy and helps companies building trust and maintaining a sustainable competitive advantage, even giving better financial return in the long term. Why is stakeholder theory important? Stakeholder theory holds that company leaders must understand and account for all
What Is The Enlightened Stakeholder Theory? Enlightened stakeholder theory adds the simple specification that the objective function of the firm is to maximize total long-term firm market value. In short, changes in total long term market value of the firm is the scorecard by which success is measured. What is the best definition of stakeholder
What Justification Does Stakeholder Theory Use For Considering Stakeholders? Stakeholder Theory is a view of capitalism that stresses the interconnected relationships between a business and its customers, suppliers, employees, investors, communities and others who have a stake in the organization. The theory argues that a firm should create value for all stakeholders, not just shareholders.